Determinants of Economic Performance in Entrepreneurship: An Analysis from the Local Economy (Revista Venezolana de Gerencia)

Summary

• The study analyzes institutional, socioeconomic, and human capital factors affecting enterprise income in the canton of Quevedo, Ecuador.p.2
• Data was collected from 297 active micro-entrepreneurs using a structured survey.p.6
• Household income is the strongest determinant, where a standard deviation increase is associated with a +2.80% change in enterprise revenue.p.8
• Perceived favorable market conditions increase monthly business income by +1.61%, representing the largest institutional effect.p.8
• Microcredit accessibility displays a statistically significant positive effect of +1.41% on average monthly business performance.p.8

Key insights

1. Household income exhibits the single largest marginal effect (+2.80%) on micro-enterprise performance, operating as a strategic buffer against formal credit constraints.p.9
2. A favorable perception of local market conditions contributes to a +1.61% increase in monthly enterprise turnover.p.8
3. Access to microcredit provides a +1.41% boost to business earnings per standard deviation increase in access perception.p.8
4. Formal business management training yields a positive effect of +1.35% on business revenue.p.8
5. Participation in support networks and entrepreneurial associations enhances business revenue by +1.12%.p.8
6. Perceived support from local public policies positively correlates with a +0.92% increase in monthly turnover.p.8
7. Female entrepreneurship is associated with a +0.84% higher monthly business income relative to male entrepreneurs.p.9
8. The integration of information and communication technologies (ICT) increases micro-enterprise monthly revenue by +0.56%.p.9